1. If you bought 10,000 USDT when a coin was at 10 USDT, and then bought another 10,000 USDT when it dropped to 5 USDT, the cost at this point is 6.67 USDT, not the imagined 7.5 USDT.
2. If you have 100,000 and earn 1% daily before exiting, assuming 250 trading days a year, your assets could reach 1.3232 million in one year, and in two years you could make 10 million.
3. If the probability of successful investment is 60%, and you invest continuously 100 times with both take-profit and stop-loss set at 10%, then the final return rate would be 300%.
4. If you enter the market with 10,000 USDT and make a profit of 10% each time, you can reach 1 million USDT on the 49th day, 10 million USDT on the 73rd day, and over 100 million USDT on the 97th day.
What I mentioned above is something that no one among ten thousand can achieve in practice, the fundamental reason being the inability to control the greed within. I won't talk about spot trading here; today I'm discussing contracts.
In contract trading, you must have your own position management and capital management, and then open positions according to your risk tolerance. So, what is position management, and what is capital management?
Position management, capital management: If you have 10,000 USDT, many novice players or some seasoned investors use 20%-30% of their principal as the base position.
At that time, whether it's profit or loss will have a significant impact on your mindset, which in turn affects the final outcome.
My personal opening position habit is to use 2%-5% of the principal as the base position, with a leverage of 20 times. Those who use leverage of 100 times or even 125 times are essentially seeking death.
Whether in futures, stocks, or cryptocurrency contracts, spot trading is a game of human nature; leverage amplifies one's greed. Everyone has their own greed, and if you amplify it infinitely, you will eventually be consumed by your own greed.
Therefore, making trades definitely requires your own capital management and position management; this is fundamental for long-term profitability.
By the way, let’s talk about the coin PEOPLE, which I started paying attention to last year. At that time, it was basically at the bottom. I remember that if I had bought it then, compared to the current market price, it has increased by about tenfold over a period of more than half a year.
I personally believe that the current prices of these altcoins cannot be sustained for long, as they have no practical application scenarios at the moment. (Although I currently hold some myself) Speaking of practical application scenarios,
What’s interesting about this bull market is that regardless of how luxurious your star lineup is or how skilled your technology is, nothing beats the reality of price increases. The vast majority of people focus on price. When it comes to application scenarios, the lessons from EOS are still fresh in memory.
Quoting the cryptocurrency industry's Sun Yuchen, value investment is a void; all-in MEME to live in the palace. This statement reflects this well.
So in this bull market, mainstream tokens like BTC and ETH must be included. You can allocate some funds to the MEME sector; after all, this bull market has created quite a few wealth myths for the cryptocurrency space.
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